Research shows the average Australian works eight hours a week of unpaid overtime

The amount of unpaid overtime workers are doing is increasing. Here’s how to know if your extra hours are reasonable.

The average Aussie worker is doing a full day of unpaid overtime each week, research reveals.

With many workers seeking a pay rise to make ends meet, experts say compensating staff for their extra effort would go a long way towards reducing the impact of soaring living costs.

“As the cost of living goes up, paid overtime is becoming so important,’’ says Kylie Baullo, managing director of payroll services provider ADP, who conducted the research.

“If you are making that decision to be away from your home and family (to work overtime), you need to make sure you are compensated for it.’’

WORKING FOR FREE

ADP’s People at Work report finds three-quarters of Aussies spend some time “working for free’’ each week, either giving up their lunch breaks or working late to finish off tasks.

Some workers are putting in a mind-boggling 26 hours or more of unpaid overtime every week, the research shows.

The average employee performs about eight hours of unpaid overtime per week, the equivalent of a full day of work.

Baullo says the amount of unpaid overtime workers are doing is increasing, up an average of two-and-a-half hours per week compared with two years ago.

Flexible working conditions have contributed to a rise in unpaid overtime.

But, rather than bosses deliberately exploiting their workers, she believes most unpaid overtime is a consequence of increasingly flexible work arrangements that allow employees to clock-in and out when and where they choose.

“(Unpaid overtime) should not be a trade-off (for greater flexibility),’’ Baullo says.

“And I don’t see companies going out of their way to do the wrong thing by their employees.

“I do believe it’s just a lack of awareness and a … lack of proper processes and systems to record the hours being worked.’’

LOSING TRACK OF TIME

JobWatch executive director Zana Bytheway agrees that most companies do not force staff to work unduly long hours and says, if they were, the not-for-profit employment legal service would be receiving far more calls from aggrieved workers.

“When you are all physically in the office, everyone walks out the door at the same time but … sometimes you lose track of time if you are out of the office area (and working from home), and there’s no trigger as to when you should stop,’’ Bytheway says.

“Also, people might be thinking, ‘I’ve got these deadlines, I’m working from home so I will just work the extra hours and get it done’ – and that might be the explanation for (the amount of unpaid overtime completed).’’

Zana Bytheway of JobWatch.

She says workers are only legally entitled to paid overtime if they are directed by their boss to work extra hours, their annualised salary does not include provisions for overtime or the extra hours worked reduce their salary below the minimum wage, as set out in the relevant award or enterprise agreement.

Bosses are not required to pay overtime if workers undertake extra hours of their own accord, Bytheway says.

EXTRA COST FOR PARENTS

Sydney mums Kate Downing and Jen Manuel transitioned from full-time to part-time hours after having children.

But Downing says the roles they worked were “never really part-time’’ and the senior marketing duo were both putting in between six and eight hours of unpaid overtime each week.

For working parents, the ramifications to unpaid overtime go beyond just missing out on extra pay, she says.

Sydney mums Kate Downing and Jen Manuel transitioned from full-time to part-time hours after having children but the roles were ``never really part-time’’ and the senior marketing duo were both putting in between six and eight hours of unpaid overtime each week.

“I was so exhausted (from working overtime) that, on the days I was home, I wasn’t able to give my family the best version of myself,’’ Downing says.

“And, when there was something really critical to deliver (at work), I would end up putting my kids into care for extra days so there was that additional financial obligation (of having to pay for childcare).’’

The women now only accept job share roles, which Manuel says has significantly reduced the amount of work required outside of their agreed hours.

“Now, when one of us has a day off, the other one is there to complete the work,’’ she says.

REASONABLE OVERTIME

Employees may refuse “unreasonable’’ requests to work overtime. However, they may be directed to work “reasonable” overtime where an employer has considered:

• Any risk to health and safety from working extra hours

• The employee’s personal situation, including family responsibilities

• The needs of the workplace

• If the employee is entitled to receive overtime payments or penalty rates for working the extra hours

• If employees are paid at a higher rate on the understanding that they work some overtime

• If the employee was given enough notice that they may have to work overtime

• If the employee has already stated they can’t ever work overtime

• The usual patterns of work in the industry

• The employee’s role and level of responsibility

• If the overtime hours are in accordance with the applicable award or agreement in relation to hours of work

• Other relevant factors.

Source: Fair Work Ombudsman